# INC-20A Commencement of Business

> A company with share capital must file Form INC-20A within 180 days of incorporation, declaring that every subscriber to the memorandum has paid for their shares, with proof such as the bank statement. Until it is filed the company cannot commence business or borrow, and missing it attracts penalties on the company and directors and can lead to the ROC striking the company off.

Practice: Company Secretary & Corporate Compliance — https://www.industax.com/services/company-secretary/

INC-20A is the most commonly missed first-year filing, often because the company's bank account opens late. The subscription money must reach the company's account and the bank statement is attached to the form.

If the deadline has passed, the form can still be filed with additional fees, but penalties under Section 10A may apply. We file it as part of a first-year compliance pack with ADT-1 and the first board meeting.

## Key facts

| Item | Detail |
| --- | --- |
| Due | Within 180 days of incorporation |
| Who | Companies with share capital |
| Proof | Bank statement showing subscribers' payment |
| Consequences | Penalties under Section 10A; possible strike-off |

## Who needs this

- Newly incorporated private and public companies with share capital
- Companies close to the 180-day limit whose bank account opened late
- Companies that missed INC-20A and received an ROC notice

## What's included

- Subscription verification
- INC-20A filing
- First-year compliance pack

## Documents

- Company bank statement showing subscription money
- Certificate of incorporation
- Director DSC

## Process

1. **Verify** — Subscription money credited and matched.
2. **File** — INC-20A filed with the bank statement.
3. **Complete first-year set** — First board meeting, auditor appointment and INC-20A closed out together.

## FAQs

### What is the due date for INC-20A?

180 days from the date of incorporation.

### Can INC-20A be filed late?

Yes, with additional fees, but penalties under Section 10A can apply and the ROC may initiate strike-off.

### Can the company do business before filing INC-20A?

No. It cannot commence business or exercise borrowing powers until the declaration is filed.

## Official sources

- Ministry of Corporate Affairs — MCA21 portal: https://www.mca.gov.in/
- Companies Act, 2013 (India Code): https://www.indiacode.nic.in/handle/123456789/2114

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Canonical page: https://www.industax.com/services/company-secretary/inc-20a-filing
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.